Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1887-05-25
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RICHMOND, VA May IL

RICHMOND. VA !. May IL, 1887,
ST. Etioard Thornton, q. c. p Cbairman Cons
mission Council Foreign Bondhoiders;
Dlar Sir,-This subcommittee, representing
tao )mmittee on the part Of the State OF Wiz.
glnia, was directed by said comm,..aa 70 a..
you gentlemen representing the Couheil of
Foreign SohSnolders. that 1t cannot recom-
mend 10 the General Assembly of Virginia the
acceptance OF your proposition as contained in
your communication and memorandum of
70 day indeed,ip is the sense OF the joint COM
mittee tnat u Is useless to report the propo-
sltioDI because
First. Taking the Indebtedness of the State
inclusive OF the bonds held by schools and COL
leges, and exclusive of the bonds held by the
state. other than the Literary Fund and after
deducting two thirds, Virginia's portion of the
dsbt due the United States, we find by apply
ing figures to your proposition that the Whole
dept OF Vir2 mia for which we would have to
provide interest annually. in round numbers.
10 he the sum OF S32, 100000 the annual interest
upon which, at the rates you name would
equal the sum OF Sak5Og0. We see no way by
which the State, in her Impoverished oondi-
ton, can pay such large annual interest, to
attempt to do so would be worse than folly.-
In the tirst place. 1t would require an inc ease
Of taxes. or q reduction of the amount (consti.
piles for the maintenance OF her free schools
The committee can do neither; but permit us
to say that. II we felt so inclined, settlement
requiring the increase OF the one or the reduce
ton OF the other, would be rejected by the peo-
pie; in the second place, II we neither increas- .
ed taxes nor reduced our appropriations to free
schools. there would almost Immediately be a
default Of the payment of the interest agreed
upon: and let us remind you that these de-
faults g., the States inability to meet her
annuelly recurring interest-have been the
cause OF all legislation hostile to her creditors
second. We fail to see how you reduce the
principal of the debt to S2S Goo co., 1t is true
you OTTER to allow the State to reduce some of
her Obligations at an amount less than their
face value, but after this reduction, by no cal.
culation can we reduce the principal below
S2B,VNoO0, or Whereabouts. We have conscien-
tiousiy given you what we honestly believe to
be our annual revenues applicable to the pay
ment OF interest on our public debt. and again
express an earnest desire to make settlement
Withln our resources, and beg to submit the
following as an evidence OF that desire.
l. and IL On your first two propositions the
joint committee consented to the rate of inter-
est therein named-to-wit, per cent. on con- |
sol bonds and ~ per cent on L. 10 bonds. on a
principal fixed IN the fourth proposition of
this memorandum.
III. AS to the third proposition the COM |
m1ttee could not see their way clear to accept |
the funding of past due coupons as therein |
and resolved to offer In Its place |
that S5O0O0O in cash be set aside to redeem |
past due coupons at the rate of fifty cents on |
thu dollar as soon as that sum can be realized |
from revenues other sources, and that all
coupons maturing up to and including July /. |
1887, be redeemed at fifty cents on the dollar,
or funded into Riddleberger bonds at the rate |
Of fifty cents on the dollar, at the pleasure of
the state.
w. That the principal Of the consol bonds
be reduced medistely to rs cents on the dol
lar, and that of the ten-forties to 90 on the dol
lar, that such reduced principal Of the consols
bear interest from July !. 1887, 81 the rate Of
per cent per annum, and that Of the teu-foFtiea